The Indian Steel Ministry reported that new steel plants with a total capacity of 34 million tons are expected to be operational before the end of the decade and will enable India to reach its 300 million tons target.
However, several challenges remain, particularly with regard to the availability of raw materials. There is considerable focus on beneficiation of low-grade iron ore, which is important to overcome supply constraints. The Ministry emphasized that the utilization of iron ore with low iron content will largely depend on cost-effectiveness, and both capital and operating expenditures will play a critical role in these decisions.
In response to these challenges, the Ministry of Steel has proposed increasing the basic steel import duty from the current 7.5% to a range between 10% and 12%. Meanwhile, the Ministry of Trade and Industry is considering meeting with major steel mills to discuss possible border tax adjustments.
The government is encouraging companies to invest in technology advancements to boost the competitiveness of the local steel sector. By incorporating tools such as artificial intelligence and digitalization, the sector efficiency can be significantly improved and operational costs reduced, it noted.
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